Make a public example of Covid funds looters

In the same week we had our annual national breakfast to pray for Kenya, a presentation to the Senate by the Ethics and Anti-Corruption Commission (EACC), as reported in the press, offered a glimpse into the state of our nation.

First, that four governors (past and present) account for Sh11 billion, or 40 per cent, of some Sh25 billion in unexplained wealth among public servants that EACC is “chasing”. Is Kenya evolving or devolving (pun intended)? Which, and whose, country do we really pray for?

Then, referring to EACC’s overall report, Sh25 billion in assets was recovered in the past five years; and a further Sh30 billion in losses averted. Out of 1,000 completed investigations, 275 went to court with 169 convictions.

Sixty per cent is a decent conviction rate, but 28 per cent looks like serious under-detection, or “shoddy” investigation. Do we have investigation (suspicion) and detection (proof) upside down?

A colleague did more number-crunching. That’s one court case per week, and Sh5 billion recovered; Sh6 billion averted per year. Since the highest office in the land told us we actually lose Sh2 billion a day, EACC’s results effectively represent one day’s work output for every year of 250 working days.

Given our “accountability aspirin” isn’t working, it’s no wonder we’re now talking “amnesty anaesthetic”!

EACC’s Senate briefing reportedly included the “Sh7 billion Kemsa scandal” apparently sitting on the desk of the Director for Public Prosecutions for a few months now. Yes, the Covid-19 procurement shenanigans that coined the term “Covid millionaires” (or was it “billionaires”?).

We recall last year’s Presidential directive to investigating agencies to complete investigations. Well, that box seems to have been ticked, but what Kenyans are looking for is action, even before convictions.

And Covid-19 stands out as precisely the sort of signalling moment to forestall our hesitant war on graft.

Take Malawi’s recent experience. In February, officials suspected in Covid-19 shenanigans were interdicted on Presidential orders to prevent them from interfering with investigations. The Auditor-General was called in to investigate, which he did. The report led to actual arrests by the police.

In April, the President addressed the nation. He walked the people through the audit findings. He explained further measures he had taken on the basis of the findings, and the independent actions subsequently expected of the criminal justice system.

In a widely circulated speech, he pronounced as a traitor “anyone who steals or wastes public funds”. He laid out his anti-graft stance with sound bite, not loud bark.

Back in Kenya, it has taken the IMF to recently remind us, in approving the second instalment of our latest loan, that “the authorities continue to push forward with their agenda to increase transparency and fight corruption…and they will shortly publish an audit of all Covid-related expenditures in Financial Year 2019/2020”. Next Monday is the deadline according to our loan deal with them.

We’ve already seen the Auditor-General’s late-2020 draft reports on Covid-19 spending at Kemsa and in counties.

In Kemsa’s case, public finance and procurement laws were violated, and there was zero value for money. Some intermingling numbers here. Sh8.4 billion irregularly procured directly, with Sh5 billion paid. Sh7.8 billion in commitment letters issued with no budget, but Sh4.7 billion was paid.

Unapproved use of the Sh4.7 billion capital budget to pay for Covid supplies, which didn’t even cover the official Sh5.1 billion procurement plan. Sh6.2 billion in stocks “lying around” as of September 2020.

“Red flags” on likely procurement fraud of over sh1.2 billion in the case of three brand new companies. Add irregular deadline extensions for deliveries, plus post-deadline deliveries and unqualified suppliers. Management responsibility (accountability) on key misdemeanours ranges from Sh6.3 billion to 8.4 billion.

The Auditor-General’s county report is no less dramatic. Here’s the big picture. We have 47 counties, of which 36 and 23 didn’t have approved Covid-19 plans and budgets respectively. These are required by law – no spending outside a plan or budget.

On delayed use of funds available (despite lack of plans and budgets), count 30 on national government grants, 44 on one donor grant, 23 on another. As in, the number of counties who didn’t move quickly enough to use funds available to them for our Covid emergency.

On procurement, 33 counties didn’t plan, four used suppliers they hadn’t prequalified, six procured without a market survey, 12 avoided competitive bidding and four procured goods without valid contracts. Money was stolen in two counties. While every county appears on the management responsibility summary of law breaking, it’s shocking that only one Governor has so far lost his job.

This is just Kemsa and the counties, not even Ministry of Health. Plus, the IMF’s own Covid database estimates at least Sh60 billion in non-health Covid-19 spending (remember the stimulus – where did it go?).

Don’t forget past usage questions over the billions received in development partner support.

What we need next Monday is not simply an audit report, but a publicly available “Fund Accountability Statement”. And a prayerful wish that day that our national leadership offers us a powerful public address on Malawi-style action that seizes the moment to make a real example of our Covid-19 looters.